Chipotle Mexican Grill, Inc. (NYSE:CMG) practically ruined its somewhat upscale “fast casual” image when the E. coli virus hit its stores at the end of 2015. It seemed like customers and press would never forgive nor forget and investors couldn’t get out of it fast enough. But now, nearly a year and a half later, everyone is willing to take another look at CMG stock.
To further improve guest experience and get more people in its stores, Chipotle has also invested in a new restaurant design, including a kitchen redesign for more efficient operation; it has added a digital ordering system from tables so customers don’t have to stand in line. It has also simplified the hiring, training and promotion processes, making guest experience a much bigger part of promotion criteria.
With all the work and expense behind it, the company is well-positioned to enjoy operating leverage, which will expand margins and improve its earnings in the current quarter. So look for upward-moving prices in CMG stock.
Chipotle shares currently have a Zacks Rank #3 (Hold), but you can buy restaurant stocks like Diversified Restaurant Holdings, Inc. (NASDAQ:SAUC), Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), Papa Murphy’s Holdings Inc (NASDAQ:FRSH) or Del Taco Restaurants Inc (NASDAQ:TACO) since they all have buy ratings and have seen recently seen a spike in earnings. Or, you can also see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Red Robin Gourmet Burgers, Inc. (RRGB): Free Stock Analysis Report Papa Murphy’s Holdings, Inc. (FRSH): Free Stock Analysis Report Del Taco Restaurants, Inc. (TACO): Free Stock Analysis Report Diversified Restaurant Holdings, Inc. (SAUC): Free Stock Analysis Report
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